What laws should you know gambling in the Netherlands?

If compared with other European countries, the process of regulating the gambling segment in the Netherlands decently stretched over time. For the reference point, you can take the 2009th, when the issue of the gambling industry was transferred to the reliable hands of an authorized commission.

Licensing Challenges

For the Dutch government, the basis in the legislation is the protection of the domestic market. Since 2010, online poker has been fully opened for foreign operators, which can not be said for other types of gambling: BC and gambling remained under the tight pressure of the state monopoly.

The first foreign operator who wanted to obtain a license authorizing betting activity was Betfair. But the harsh legislation led to the fact that the latter, as well as Ladbrokes, entered into an unequal battle, which resulted in a lawsuit lasting for a long ten years.

Some companies had to voluntarily leave the gambling market of the country because of long waiting for permission to legal activity. At the end of 2014, the government finally eased the legislative base and the operators had the opportunity to “pre-order” the license, but only to master the market will not be until 2017.

The situation is also heating up because of political instability. The coalition government has been doing everything in its power to ensure that laws regulating gambling activities are not considered.

Unreasonable tax burden

In most European countries, the tax burden for gambling is set at 20%. The Dutch parliamentarians are currently working out a law that will raise this rate for land gambling houses to 29%. It is easy to guess that such an increase in the rate will put a heavy burden on international operators. But the government of the country explains the adoption of such a decision by the desire to fully control the domestic gambling market and to minimize offshore profits. Taking into account that operators are already under pressure from complex legislation, constant tax levies on the part of the state, social responsibility, the tax burden in such a volume will “hit the pockets” of those operators who “survive”.

But do not blame the regulator. Partly in this state of affairs, the businessmen from the hazardous industry themselves are to blame. Several years ago, the first persons of European gambling were asked to legalize gambling activities and introduce tax on it. Legislators followed the proposed path: they began to license the gambling business and tax it with taxes.

Mergers and acquisitions

Global Betting and Gaming Consultants recently said in its report that the West European market, which has a local license in its hands, increased profit by 30% by 2015, seven years ago, this figure was only 49%. As experts predict, by 2019 the total profit will approach 87%.

The company Bwin stood in line with those who loudly said that he wants to regulate the gambling business. But in the end, Bwin was absorbed by GVC Holdings, which acted using an offshore scheme, and it became a direct evidence of how online gambling works in Europe. In the future, tightening regulation will continue and lead to the fact that operators in search of better business conditions will go either along the path of the merger, or along the path of absorption.

Tax reduction

I want to draw attention to the fact that offline institutions pay tax in the event that a prize of $ 500 and more is played out. This privilege lowers the tax burden to 10% and it is considered a state aid to the gambling business. Today on the agenda is the question: is it worthwhile to act in this direction and whether it is necessary to increase the number of such companies?

Important news in the gambling industry of the Netherlands was the future merger of two lotteries: state and De Lotto, at the end of last year Autoriteit Consument & Markt approved this merger.

In March, the last discussions of the draft law on gambling ended. Apparently, this law will come into force in the Netherlands no earlier than 2017 and only after half a year full licensing of gambling starts.

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